- Following an 8% drop, Ethereum is holding at the $1.8K mark.
- The decline triggered liquidations, wiping out $252.09 million worth of ETH.
Escalating fears over global trading conditions have amplified risks across the crypto space, leading to steep losses for Bitcoin and Ethereum. Ethereum (ETH) has endured weeks of downside pressure. It prompts the big question—will ETH recover from its slump?
In the early hours, the bulls led the charge, but the bears swiftly countered and took command of the ETH market. As of now, Ethereum faces an uphill battle pushing past the $2.5K mark.
The bears gained enough strength for a move below the $1.8K support, reaching the lowest of $1,760 from a peak of $2,150. The altcoin is supposed to clear the resistance zones between $1.9K-$2.2K to stimulate a positive breakout.
Ethereum has registered a loss of over 8.80%, trading at $1,883 with the daily trading volume of the altcoin reaching $39.13 billion. In addition, the market has observed a liquidation of $252.09 million worth of Ethereum during this timeframe.
As per on-chain data, a whale sold 25,800 ETH worth $47.8 million, taking a $32 million loss to prevent their position from being liquidated. They still hold 35,034 ETH on Aave, with a health rate of 1.4.
Furthermore, a wallet suspected to belong to the Ethereum Foundation deposited 30,098 ETH valued at $56.08 million to Maker to reduce its liquidation risk.
How Long Will the Ethereum Bears Stay in Charge?
Ethereum has established a mighty death cross with the altcoin nosedived to the unforeseen range. ETH might bring in a test of the crucial support at the $1.7K mark. In a worst-case scenario, the altcoin could tumble to $1,522, making a turnaround more difficult.
Assuming the recovery of ETH, it could initially challenge the $1,997 resistance. Ethereum might lay the groundwork for a climb toward $2.2K if bullish momentum picks up. The confirmation of a definitive recovery hinges on the formation of the golden cross.
The Moving Average Convergence Divergence (MACD) line and signal line of the ETH/USDT trading pair have been crossed below the zero line. This crossover signals the asset’s active and broader negative sentiment in the market.
Moreover, the Chaikin Money Flow (CMF) indicator resting at -0.11, infers the capital is flowing out of the asset, showing a bearish bias. In the meantime, the daily trading volume of Ethereum has increased by over 85.14%.
Besides, a negative Bull Bear Power (BBP) value of -260.68, suggests strong bearish momentum, pushing the price significantly lower. ETH’s daily relative strength index (RSI) at 30.40 indicates the asset is nearing oversold territory.
Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.
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